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Senate Could Pass Mortgage Reform
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A sweeping mortgage reform bill is expected to pass the state Senate Wednesday.

The comprehensive bill aims to stave off the subprime mortgage lending crisis in Connecticut.

Senator Bob Duff, a co-chair of the General Assembly’s Banks Committee, designed the bill that will create new regulations on mortgage lenders and brokers, a mediation program for those facing foreclosure and an economic assistance program within the Connecticut Housing Finance Authority.

“It took a long time to negotiate this bill. Keep in mind we’ve done in ten weeks what congress has yet to do in a year and a half. But what we have is three bills in one. It’s very comprehensive. It’s very progressive. I think it’ll be used as a model throughout the rest of the country.”

Connecticut has the10th highest foreclosure rate in the nation.

The $141 million bill will be funded through existing money with the Connecticut Housing Finance Authority, $50 million from bonds and money from the special banking fund. No money from the state’s general fund will be used.

Governor Rell is expected to sign the legislation.